A business credit score is a rating that reflects how reliably your company meets its financial commitments. It is separate from any personal credit history and is built from information about the company itself, drawn from credit reference agencies and public records.
What feeds into it
Scores are calculated by credit reference agencies using a range of company information. While the exact methods differ between agencies, common factors include the following.
- How promptly the company pays suppliers and existing commitments.
- Filed accounts and public records held at Companies House.
- The age and trading history of the business.
- Any county court judgments or signs of distress.
Why it matters
Lenders, suppliers and partners may look at a business credit score to gauge risk before extending credit or terms. A stronger score can widen the options available to a company and support better conversations about finance.
Credicorp lends only to UK limited companies and LLPs for business purposes, and your company's credit profile is one part of how we assess an application. It is not the whole picture, though. We also look at how the business trades and whether a facility is affordable. Keeping accounts up to date and paying commitments on time both help build a healthy profile.
See also: Your business credit score: how it works and how to improve it, What is credit utilisation?, What credit score do I need for a business loan?.